McCormick & Co. (MKC) Sees Large Volume Increase on Better-Than-Expected Earnings
Shares of McCormick & Co. (NYSE:MKC) saw an uptick in trading volume on Friday following a better than expected earnings announcement. 1,141,446 shares traded hands during trading, an increase of 63% from the previous session’s volume of 701,478 shares.The stock last traded at $100.20 and had previously closed at $97.39.
The company reported $1.03 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.94 by $0.09. The company had revenue of $1.09 billion for the quarter, compared to the consensus estimate of $1.09 billion. McCormick & Co. had a return on equity of 26.08% and a net margin of 9.96%. McCormick & Co.’s quarterly revenue was up 2.9% compared to the same quarter last year. During the same period in the previous year, the business earned $0.85 earnings per share.
The firm also recently declared a quarterly dividend, which will be paid on Tuesday, October 25th. Shareholders of record on Tuesday, October 11th will be issued a dividend of $0.43 per share. The ex-dividend date of this dividend is Thursday, October 6th. This represents a $1.72 dividend on an annualized basis and a yield of 1.72%. McCormick & Co.’s dividend payout ratio is presently 50.89%.
A number of research firms have commented on MKC. Zacks Investment Research cut McCormick & Co. from a “buy” rating to a “hold” rating in a report on Thursday, August 4th. Deutsche Bank AG reissued a “buy” rating and set a $113.00 price target (up from $110.00) on shares of McCormick & Co. in a report on Sunday, June 26th. Sanford C. Bernstein cut McCormick & Co. from an “outperform” rating to a “market perform” rating and decreased their price target for the company from $113.00 to $104.00 in a report on Friday, September 16th. They noted that the move was a valuation call. Finally, Citigroup Inc. raised McCormick & Co. from a “sell” rating to a “neutral” rating and raised their price target for the company from $85.00 to $102.00 in a report on Thursday, June 23rd. One analyst has rated the stock with a sell rating, five have assigned a hold rating and three have given a buy rating to the company. The stock has an average rating of “Hold” and a consensus target price of $97.11.
In related news, CFO Gordon Mckenzie Stetz, Jr. sold 38,900 shares of McCormick & Co. stock in a transaction dated Wednesday, July 13th. The stock was sold at an average price of $105.17, for a total value of $4,091,113.00. Following the completion of the transaction, the chief financial officer now owns 94,012 shares in the company, valued at $9,887,242.04. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Patricia A. Little sold 3,750 shares of McCormick & Co. stock in a transaction dated Tuesday, July 5th. The stock was sold at an average price of $107.22, for a total value of $402,075.00. Following the completion of the transaction, the director now owns 13,227 shares of the company’s stock, valued at approximately $1,418,198.94. The disclosure for this sale can be found here. 13.70% of the stock is owned by corporate insiders.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Van ECK Associates Corp raised its position in McCormick & Co. by 29.3% in the second quarter. Van ECK Associates Corp now owns 1,045 shares of the company’s stock valued at $111,000 after buying an additional 237 shares in the last quarter. Coconut Grove Bank raised its position in McCormick & Co. by 1.1% in the second quarter. Coconut Grove Bank now owns 1,145 shares of the company’s stock valued at $122,000 after buying an additional 12 shares in the last quarter. Mizuho Asset Management Co. Ltd. raised its position in McCormick & Co. by 90.4% in the second quarter. Mizuho Asset Management Co. Ltd. now owns 1,331 shares of the company’s stock valued at $142,000 after buying an additional 632 shares in the last quarter. Meeder Asset Management Inc. raised its position in McCormick & Co. by 151.2% in the second quarter. Meeder Asset Management Inc. now owns 1,575 shares of the company’s stock valued at $169,000 after buying an additional 948 shares in the last quarter. Finally, Ferguson Wellman Capital Management Inc. bought a new position in McCormick & Co. during the second quarter valued at approximately $207,000. Institutional investors own 72.48% of the company’s stock.
The company has a market capitalization of $12.65 billion, a P/E ratio of 29.63 and a beta of 0.48. The company has a 50-day moving average of $99.50 and a 200-day moving average of $99.20.
McCormick & Co. Company Profile
McCormick & Company, Incorporated manufactures, markets and distributes spices, seasoning mixes, condiments and other flavorful products to the food industry, including retailers, food manufacturers and foodservice businesses. The Company operates in two segments: consumer and industrial. Its brands in the Americas include McCormick, Lawry’s, Stubb’s, Club House, Zatarain’s, Thai Kitchen and Simply Asia.
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